news     August 3, 2019

Waste-Based Power Plant Putri Cempo Solo Funded by PT SMI

The financing of the Waste-Based Power Plant (PLTSa) project at the Putri Cempo Final Disposal Site (TPA) in Jebres District, Solo, met a bright spot. From the offer of three prospective creditors, the Management of PT Solo Citra Metro Plasma Power (SCMPP) as the manager of Putri Cempo PLTSa chose domestic investment to finance the project.

PT SCMPP’s Managing Director, Erlan Syuherlan, said that he had already received three proposals. The three potential investors are PT Sarana Multi Infrastruktur (SMI), China Construction Bank, and Korea Development Bank. The three are targeted to provide funding for the first phase of PLTSa construction. From the three proposals, the offer is almost the same.

“But based on several considerations, PT Sarana Multi Infrastruktur (SMI) was finally chosen,” he said, to reporters after the Financial Close PLTSa coordination meeting at Solo City Hall, Thursday (1/8).

Erlan explained, some of these considerations included, the size of the loan, the period of installments and the percentage of interest. One of the reasons PT SMI was chosen because of its status as a State-Owned Enterprise (BUMN). “So it’s only natural that SMI participates in developing the country,” he added.

PT SCMPP projects that the construction of Putri Cempo PLTSa requires a budget of around 58 million US dollars. The deadline for seeking financing (financial close) ends in March 2020.

PLTSa construction is planned to take place in two stages. The first phase PLTSa is projected to be able to produce electricity at 5 megawatts (MW) per hour. The first phase of construction requires a capital injection of around US$ 23 million or around IDR 330 billion.

“Later the investment value is approximately 70 percent of the total budget needs,” he said.

Meanwhile, the Mayor of Solo, FX Hadi Rudyatmo, said that the City Government had submitted a request for waste processing fees (BPLS) for the operation of Putri Cempo PLTSa to the central government. The City Government asked for BPLS assistance of IDR 400 thousand per ton of waste.

Based on Presidential Regulation No. 35 Year 2018 concerning the Acceleration of the Construction of Waste Processing Installation into Electric Energy Based on Environment-Friendly Technology, the central government can help a maximum of IDR 500 thousand per ton of garbage per day. “Well, we ask that this is smaller than the maximum limit,” he said.

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